Fenwick sales and profits rise, Bond Street sale boosts bottom line

Department store chain Fenwick’s latest result show a year of ongoing growth and other moves in the right direction, while the sale of its Bond Street, London, store puts it in a strong position to be able to invest in its remaining locations, as well as its digital operations.

Its 2022 accounts filed at Companies House showed its gross sales rising a healthy 31% to £315 million with shoppers spending more time in its stores as shown by the strength of its dining offer.

And as well as sales rising generally in its stores, the company saw a massive 51% growth in sales online, following major investment into digital by the firm.

It swung to a pre-tax profit of £57.1 million, up significantly from a loss of £5.22 million in the previous period, although this was boosted by the proceeds of that Bond Street property sale.

The sale completed shortly after the financial period ended and it’s clearly hugely important for the business as it gives it a cash pile with which to invest at a time when some other department stores are cutting back.

The company’s improving position seems to have continued since the period ended with it launching its first ever ad campaign this autumn and investing £40 million in a multi year programme to transform its Newcastle flagship store.

It has also been paying attention to other stores in the chain, and only last month renamed the Kingston branch from Bentalls to Fenwick after over 20 years, suggesting a strong commitment to the branch.

With the company continuing to own the majority of its properties, rather than renting them (the benefit of which was made very clear by that Bond Street sale), it gives it strong financial foundations at a time when the UK retail sector is facing very tough conditions.